Samsung C&T to join Oman’s green ammonia project

From left: Samsung C&T's renewable business development chief Ahn Dong-bok, Najla Al Jamali, CEO of OQ Alternative Energy, Oman Energy Minister Salim bin Nasser bin Said Al Aufi, Sami Kamel, Cutco Group's cleantech division head, and Atsushi Suzuki, president and CEO of Marubeni Middle East and Africa Power, attend a partnership agreement ceremony in Muscat, Oman, Monday. (Samsung C&T)

Samsung C&T, the construction and energy arm of Samsung Group, announced Tuesday that it has won business rights for Oman’s megasized green ammonia project by joining forces with global partners.

Samsung C&T has formed a consortium together with Japan’s Marubeni Middle East and Africa Power, Oman’s state-owned oil company OQ Alternative Energy and the United Arab Emirates-based Dutco Group, embarking on the joint development of Oman's green hydrogen plan called "SalalaH2" -- a project that aims to produce 1 million metric tons of green ammonia annually.

Under a goal of creating the world’s largest production hub for green hydrogen, Oman has designated its southern port city of Salalah in the Dhofar province alongside two other locales as green hydrogen zones.

Recognized for its expertise in renewable energy projects, the consortium led by Samsung C&T was granted exclusive rights by the Omani government, without facing heated competition in the bidding, the company added.

To facilitate the project, the consortium signed joint business development and land-use agreements with Hydrom, a subsidiary of the state-owned Energy Development Oman, in the capital Muscat on Monday.

Under the agreement, the consortium aims to generate 1 million tons of green ammonia annually in the Salalah Free Zone by utilizing OQ’s existing ammonia plant in the region. It also seeks to build a new renewable energy facility powered by solar and wind energy for production.

It plans to break ground for the building of the new facility in 2027, eyeing to commence commercial production by 2030. The produced green ammonia will then be exported to global markets, including Korea and Japan, to spur green hydrogen growth there, the company said.

“By joining the global green ammonia project together with internationally renowned partners, we seek to solidify our status as a global leader in the field of sustainable energy,” said Lee Byung-soo, Samsung C&T’s executive vice president and head of energy solution business unit.

By Song Jung-hyun(junghyun792@heraldcorp.com)